politics
British Council Has Not Repaid Principal on £197 Million Loan but Offered Art Collection as Repayment
The National Audit Office reported that the British Council has repaid none of the £197 million loan balance and does not expect to return to profit until 2029/30. Negotiations continue over a repayment plan that could cut a quarter of staff and close offices in 11 countries.
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The British Council has repaid none of the principal on a £197 million government loan, the National Audit Office said in a report published Wednesday. The organization has met only interest payments since April 2024. The loan began as £60 million from the Foreign Office in 2020.
Its balance has since grown to £197 million, and its original expiry date of March 2024 has been extended to September 2027. The British Council has offered to repay the loan using its art collection, which includes works by LS Lowry, Francis Bacon, Tracey Emin and David Hockney. The Government rejected the offer.
The British Council and the Foreign Office are negotiating a repayment plan that would settle the debt within 15 years, the National Audit Office said. That plan, which still requires ministerial approval, could result in around a quarter of British Council staff being made redundant and the closure of offices in 11 countries.
The British Council does not anticipate returning to profit until the financial year 2029/30.
A British Council spokesperson said the loan was awarded on commercial terms with interest at market rates. The organization said it welcomed the NAO report and was taking steps to cut costs and grow revenue.
